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Include restrictive covenants in a contract of employment

Key points

A restrictive covenant is generally used to prevent employees from doing certain things after leaving the organisation, such as setting up in competition or poaching clients.

When including a restrictive covenant in a contract of employment, an employer should understand that, as it is a restraint of trade, it will be enforceable only if it is necessary to protect its legitimate interests.

The employer must make sure that the restrictive covenant is relevant, proportionate and reasonable.

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